Business Information Systems Exam 1

Ch 1-2

Information age

present time, during which infinite quantities of facts are widely available to anyone who can use a computer

Internet of things (IoT)

a world where interconnected internet-enabled devices or things have the ability to collect and share data without human intervention

Machine-to-machine (M2M)

refers to devices that connect directly to other devices

Drivers of information age

data, information, business intelligence, knowledge

data

raw facts that describe the characteristics of an event or object

structured data

stored in a traditional system such as a relational database or spreadsheet

unstructured data

collection not defined and does not follow a specified format

big data

collection of large, complex data sets, including structured and unstructured, which cannot be analyzed using traditional database methods and tools

snapshot

a view of data at a particular point in time

4 characteristics of big data

variety, veracity, volume, velocity

variety

different forms of structured and unstructured data collection

veraity

uncertainty of data, including biases, noise, and abnormalities

volume

scale of data

velocity

analysis of streaming data as it travels around the internet

information

data converted into a meaningful and useful context

report

document containing data organized in a table, matrix, or graphical format allowing users to easily comprehend and understand information

static report

created once based on data that does not change

dynamic report

changes automatically during creation

business intelligence

info collected from multiple sources such as suppliers, customers, competitors, partners and industries that analyzes patterns, trends, and relationships for strategic decision making

business analytics

scientific process of transforming data into insight for making better decisions

types of analytics

descriptive, predictive, prescriptive

knowledge worker

individual valued for their ability to interpret ad analyze information

production

process where a business converts raw materials into finished products

systems thinking

way of monitoring entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part

management information systems (MIS)

business function, like accounting and human resources, which moves info about people, products, and processes across the company to facilitate decision-making and problem-solving

chief info officer (CIO)

oversees all uses of info and ensures the strategic alignment of MIS with business goals and objectives

chief technology officer(CTO)

ensuring the throughput, speed, accuracy, availability, and reliability of information

business strategy

leadership plan that achieves a specific set of goals or objectives such as: developing new products or services, entering new markets, increasing customer loyalty, attracting new customers, increasing sales

competitive advantage

short term. product of service that an organization’s customers place a greater value on than similar offerings from a competitor

first-mover advantage

occurs when organization can significantly impact its market share by being first to market with a competitive advantage

SWOT analysis

evaluate project position

5 forces model

evaluates industry attractiveness

3 generic strategies

chose business focus

Value chain analysis is

executes business strategy

SWOT

(internal) strengths, (internal) weaknesses, (External) opportunities, and (external) threats.

5 forces

threat of substitutes, buyer power, supplier power, threat of new entrants, rivalry among existing competitors (Want all to be low)

buyer power

ability of buyers to affect the price of an item

switching cost

manipulating costs that make customers reluctant to switch to another product

supplier power

suppliers’ ability to influence the prices they charge for suppliers

threat of substitues

high when many alternatives, low when there are few

threat of new entrants

high when it is easy for new competitors to enter market, low when significant entry barriers

entry barrier

feature of a product or service that customers have come to expect and entering competitors must offer the same for survival

rivalry among existing competitors

high when competition fierce, low when competition complacent

product differentiation

occurs when a company develops unique differences in its products or services with the intent to influences demand

three generic strategies

cost leadership, differentiation, focused strategy

business process

standardized set of activities that accomplish a specific task

value chain analysis

views a firm as series of business processes that each add value

primary value activities

inbound logistics, operations, outbound logistics, marketing and sales, service

support value activities

firm infrastructure, HR management, technology development, procurement

managerial decision-making challanges

analyze large amounts of info, apply sophisticated analysis techniques, make decisions quickly,

decision-making process

problem identification, data collection, solution generation, solution test, solution selection, solution implementation

types of decision making

operational, managerial, strategic

operational decisions making

employees develop, control, and maintain core business activities required to run the day-to-day operation

structured decisions

situations where established processes offer potential solutions

managerial decision making

employees evaluate company operations to identify, adapt to, and leverage change

semistructured decisions

occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision

project

temporary activity a company undertakes to create a unique product, service, or result

metrics

measurements that evaluate results to determine whether a project is meeting its goals

critical success factors (CSFs)

crucial steps companies make to perform to achieve their goals and objective and implement strategies

key performance indicators (KPIs)

quantifiable metrics a company uses to evaluate progress toward critical success factors

External KPI

market share-portion of market a firm captures

Internal KPI

return on investment (ROI)-indicates earning power of a project

Efficiency mis metrics

measure performance of MIS itself, such as throughput, transaction speed, and system availability

effectiveness MIS metrics

measures the impact MIS has on business processes and activities, including customer satisfaction and customer conversation rates

benchmark

baseline values the system seeks to attain

benchmarking

process of continuously measuring system results, comparing with optimal performance, and identifying steps to improve performance

model

simplified representation or abstraction of reality

transaction processing system (TPS)

basic business system that serves the operational level and assists in making structured decision

online transaction processing (OLTP)

capturing of transaction and event info using technology to process, store, and update

Online analytical processing (OLAP)

manipulation of info to creat business intelligence in support of strategic decision making

decision support system (DSS)

models info to support managers and business professionals during the decision-making process

4 quantitative models used by DSSs

what-if analysis, sensitivity analysis, goal-seeking analysis, optimization analysis

Executive information system (EIS)

specialized DSS that supports senior level executives within the organization. Consolidation, drill-down, slice-and-dice, pivot

weak AI

machines can still make their own decisions based on reasoning and past sets of data

strong AI

works toward providing brainlike powers to AU machines; in effect, it works to make machines as intelligent as humans,

machine learning

type of AI that enables copmuters to understand concepts in environment and also lear

data aumentation

occurs when adding additional training examples by transforming existing examples

neural network

attempts to emulate the way a human brain works

fuzzy logic

mathematical method of handling imprecise or subjective info

deep learning

process that employes specialized algorithms to model and study complex datasets; the method is also used to establish relationships among data and datasets

reinforcement learning

training of machine learning models to make a sequence of decision

virtual reality

computer-simulated environment

customer facing process

results in a product or service that is received by an organization’s external customer

business facing process

invisible to the external customer but essential to the effective management of the business

business process modeling

activity of creating a detailed flow chart or process of a work process showing inputs, tasks, and activities, in a structured sequence

business process model

graphic description of a process, showing sequence of process tasks. As-Is model and To-Be model

workflow control system

monitor processes to ensure tasks, activities, and responsibilities are executed as specified

digitization

automation of existing manual and paper-based processes and workflows to a digital format

operational business processes

static, routine, daily

managerial business process strealining

improves business process efficiencies by simplifying or eliminating unnecessary steps

bottleneck

occur when resources reach full capacity and annot hangle any additional demand

redundancy

occurs when a task or activity is unnecessarily repeated

business process reengineering (BPR)

analysis and redesign of workflow within and between enterprises

data mining

process of analyzing data to extract info not offered by raw data

CRUD

create, read, update, delete

expert systems

computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems